Improper payments by federal agencies reach a record $125B

Witnesses, from left, Daniel Bertoni, director, Education, Workforce, and Income Security, Judy Rivers of Logan, Ala., Sean Brune, senior advisor to the deputy commissioner for Budget, Finance, Quality and Management, U.S. Social Security Administration, Patrick O'Carroll, Jr., inspector general, U.S. Social Security Administration, David Mader, controller, Office of Management and Budget, and Beryl Davis, director, Financial Management and Assurance, U.S. Government Accountability Office, are sworn in before they testify before the Senate Homeland and Government Affairs Committee's hearing related to issues of the Government's Death Master File list on Capitol Hill in Washington, Monday, March 16, 2015. (AP Photo/Cliff Owen) Witnesses, from left, Daniel Bertoni, director, Education, Workforce, and Income Security, Judy Rivers of Logan, Ala., Sean Brune, senior advisor to the deputy commissioner for Budget, Finance, Quality and Management, U.S. Social Security Administration, Patrick O'Carroll, Jr., inspector general, U.S. Social Security Administration, David Mader, controller, Office of Management and Budget, and Beryl Davis, director, Financial Management and Assurance, U.S. Government Accountability Office, are sworn in before they testify before the Senate Homeland and Government Affairs Committee's hearing related to issues of the Government's Death Master File list on Capitol Hill in Washington, Monday, March 16, 2015. (AP Photo/Cliff Owen)

By Associated Press March 17, 2015 1 min read

WASHINGTON (AP) – Federal agencies set a new record for improper payments last year, shelling out $125 billion in questionable benefits after years of declines.

The payments included tax credits for families that didn’t qualify, Medicare payments for treatments that might not have been necessary, and unemployment benefits for people who were actually working.

A new government report says improper payments increased by $19 billion over the previous year. In addition to fraud, the errors included overpayments and underpayments, as well as payments made without proper documentation.

While the errors were spread among 22 federal agencies, three programs stood out: Medicare, Medicaid and the Earned Income Tax Credit. Together, the three programs accounted for more than $93 billion in improper payments.